This paper brings key insights from the field of behavioral economics to inform workforce development efforts and especially attempts to engage employers. The National Fund is using Behavioral Economics to inform its Job Quality efforts and has designed this report for anyone interested in how decisions are made and what cognitive biases influence our choices. This report outlines six key insights of behavioral economics, as seen on the left, and applies them to situations of workforce development and business leaders working together. Specifically, the report outlines four biases—in-group/out-group bias, status quo bias, fundamental attribution error, and the focusing effect—that might affect an employer’s decisions and suggests informed solutions.
A recent accomplishment in the field of behavioral economics, Richard H. Thaler was awarded the Nobel Prize in economics for his contributions: “Richard H. Thaler, whose work has persuaded many economists to pay more attention to human behavior, and many governments to pay more attention to economics, was awarded the Nobel Memorial Prize in Economic Sciences on Monday [October 9, 2017].”